Rent prices in London enjoy 'staggering rise'

Despite the high cost of living and expensive property market, London continues to draw Brits from all over the country with its extensive economic prospects, cultural variety and vibrant lifestyle.

And according to Tim Morgan, director of Emerging Real Estate, it is this wide range of appealing factors that can explain the strength of the capital's private rental sector in recent years.

"In the last three years, rents in London have increased by a staggering 32 per cent - compared to seven per cent across the rest of the UK," he commented.

"It is without doubt that the number of job opportunities available in London is causing migration and ultimately contributing towards the growing population and increased demand for properties in the City."

As housing in the city remains unaffordable for many - especially those who are moving into London from other areas of the UK - demand for rental properties has shot up dramatically over the past three years.

Indeed, as Mr Morgan highlights, the 32 per cent increase in rents in the capital can be attributed to the remarkable rise in the number of prospective tenants who are looking for a home to let.

It is factors such as these that have enabled investors to take full advantage of the trend and respond to the intensifying competition for their tenancies by pushing up their rent prices.

So as landlords in London continue to enjoy impressive yields and benefit from the way in which supply is struggling to keep up with demand, it seems that the capital's buy-to-let sector will continue to strengthen in the future.

However, it is still vital that investors take steps to guard against losses if they are to maximise profits and avoid the risks associated with damage.